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Relationship with China

Relationship with China. Security Relationship. Australia’s security relationship with China is complicated by: our close security ties with the U.S. How can we balance our close economic ties with a rising China and our close security ties with the U.S?

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Relationship with China

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  1. Relationship with China

  2. Security Relationship • Australia’s security relationship with China is complicated by: • our close security ties with the U.S. How can we balance our close economic ties with a rising China and our close security ties with the U.S? • Fears of how China’s rise will destabilise the region • Fears of Chinese encroachment into our regional sphere of influence

  3. Economic Relationship • China is now Australia’s No 1 Trading Partner 21% of total Exports in 2009 17% of total Imports in 2009 • http://www.dfat.gov.au/geo/fs/aust.pdf • http://www.dfat.gov.au/geo/fs/chin.pdf Exports include: Goods: iron ore, coal, wool, copper Services: Education Imports include: clothing, telecom equipment, computers, retail goods

  4. As can be seen – Australia’s exports to China have been massively increasing both under Howard and Rudd – going from around 10 billion in 2004 to around 40 billion a year in 2009.

  5. Under Howard • Our relationship with China got off to a bumpy start when Alexander Downer the Foreign Minister blundered into the Taiwan dispute at the height of the 1996 Taiwanese Missile Crisis. In response to the U.S sending to warships off the coast of Taiwan – “I think what we have seen in the last few days is a very clear demonstration by the United States that it is interested in maintaining its involvement in the security of the region and we obviously welcome that.” http://www.securitychallenges.org.au/ArticlePDFs/vol5no1McDowall.pdf

  6. After China responded coldly to this statement, as they saw Howard moving to try and contain China, he tried hard to repair the relationship. • In 2004 when visiting China – Downer stated “With Premier Wen we agreed that Australia and China would build up a bilateral strategic relationship, that we would strengthen our economic relationship and we would work together closely on Asia Pacific issues, be they economic or security issues.” He clearly stated that Australia saw China as a strategic partner. This was clearly underpinned by our burgeoning economic ties. http://www.securitychallenges.org.au/ArticlePDFs/vol5no1McDowall.pdf

  7. A bet each way (hedging our bet) • The developing Trilateral Security Dialogue (TSD) involves ministerial level dialogue on security issues between the U.S., Japan and Australia. Initiated in 2001 and formalised in 2006 • For Australia, hedging was a sensible approach, encouraging greater US involvement in the region, while attempting to tighten Australia’s ties with China. If attempts to engage with China had failed, Australia would have still possessed strong alliances in the region to balance with against China. • However China was not amused seeing this as a Containment strategy by the U.S. and its major allies in the region who labelled it “a little Nato” against China • http://www.atimes.com/atimes/China/HC18Ad01.html

  8. Visits by HuJintao and George W. Bush to Parliament • BALANCING THE GIANTS Perhaps the best indication of how Australia has to balance its relationship between China and the U.S. is when on: Oct 23rd 2003: George W. Bush addressed both Houses of Federal Parliament Oct 24th 2003: HuJintao addressed both Houses of Federal Parliament

  9. Howard on Chinese Human Rights • Beijing put Australia into deep diplomatic freeze for almost a year. Howard got the message. He changed China policy dramatically. This is how he phrased it in 1997: "Australia and China are very different societies, our histories have been very different, our political systems have been very different, but our relationship has always been at its very best. Each of us has fully understood the depth of those differences yet resolved to work together to capitalise on the areas of mutual benefit and common interest. It is always important in a relationship between two very different societies that you put aside those differences and you focus on those areas of common agreement." • It became a briskly "business first'' approach. Sometimes it verged on being "business only." Howard put human rights issues into a tank called a human rights dialogue, a lower-level dialogue of the deaf, from which they never emerged. • http://www.brisbanetimes.com.au/opinion/in-this-chinese-fable-the-chicken-upsets-the-fox-in-his-lair-20090821-etpk.html

  10. APEC 2007 • 45 Billion gas deal announced at APEC 2007 • http://www.heraldsun.com.au/news/national/b-gas-deal-struck-with-china/story-e6frf7l6-1111114353228

  11. Rudd Years 2007-2010 • There was great hope that with a “Sinophile” PM who speaks Mandarin, with a background in foreign affairs, that our relationship with China both economically, politically and in terms of security would blossom under Rudd. • However the reality was that under Rudd whilst trade with China continued to grow strongly our political relations came under serious stress.

  12. Rudd Years EXAMPLES OF CLOSE TIES CONTINUING DESPITE TENSIONS 50 BILLION DOLLAR GAS DEAL 2009 http://www.news.com.au/business/australia-signs-50-billion-gas-deal-with-china/story-e6frfm1i-1225763548184

  13. Tension 1: Human Rights • During a visit to China in 2008, Rudd spoke bluntly in Madarin to a group of Chinese University students on the issue of human rights in Tibet • "Australia, like most other countries, recognises China sovereignty over Tibet but we also believe it is necessary to recognise there are significant human rights problems in Tibet," Mr Rudd said. "We recognise the need for all parties to avoid violence and find a solution through dialogue. As a long-standing friend of China, I intend to have a straightforward discussion with China's leaders on this.“ • http://www.theage.com.au/news/national/rudd-confronts-china-on-human-rights/2008/04/09/1207420486421.html?page=fullpage#contentSwap1

  14. Tension 2: Chinese investment in Oz • In Feb 2009: Chinalco a state owned Chinese announced that were going to lift there ownership of Rio Tinto from 8% to 18%, with the agreement of Rio management. • The deal would have needed to be approved by the Federal Government and there was much debate in the media and amongst politicians as to if this was in Australia’s national interest. http://business.theage.com.au/yuan-flows-raise-national-interest-questions/20080208-1r4l.html?page=fullpage#contentSwap1 • However in June 2009 Rio turned around and rejected the deal, instead doing a deal with BHP Billiton instead http://www.china-briefing.com/news/2009/06/05/rio-tinto-rejects-chinalco-bid.html • The Chinese were not amused! • 2009: Chinese mining blocked within Woomera Rocket range by Defence • http://www.theage.com.au/business/china-again-locked-out-of-test-range-20090923-g2qg.html

  15. Tension 3: Stern Hu Case • The Rio Tinto espionage case began with the arrest on 5 July 2009, of four staff in the Shanghai office of the Rio Tinto Group, in the People's Republic of China, who were subsequently accused of bribery and espionage. The Rio Tinto employees, Australian Stern Hu and three Chinese colleagues, went on trial in Shanghai on Monday, 22 March 2010. • The government dropped the charges relating to the alleged theft of trade secrets before the trial, and the defendants admitted to having received bribes during the trial. • Following the trial, Stern Hu was sentenced to 10 years jail. Hu and other convicted executives have also had their employment terminated by Rio Tinto Ltd.It is reported that the motive behind the terminations is in regards to a breach of conduct, with Rio Tinto accepting the evidence provided showing instances of bribery. Rio Tinto also states that the trial will not affect business ties, according to its chief executive.[7 • The arrests came during difficult negotiations over the price of iron ore for the 2009-2010 period. After steep increases in 2008, Chinese steelmakers hoped to see iron prices come down again because of the global recession. [8] The Rio Tinto employees are accused of having industry data crucial to the negotiations too detailed to have been obtained legally. • The arrests also came shortly after Rio Tinto declined to sell part of the company to the Chinese state-owned company Chinalco http://en.wikipedia.org/wiki/Rio_Tinto_espionage_case

  16. Tension 4: Defence Minister Scandal • On 26 March 2009, Fairfax Media newspapers reported that officers in the Department of Defence had conducted a covert and unauthorised investigation into Fitzgibbon's friendship with a Chinese-Australian businesswoman, Helen Liu, in the belief that it constituted a security risk. • More leaks emerged about his links to Liu including that he had recieved free flights to China, and rented an apartment she owned – which he had not disclosed to Parliament. • He eventually resigned in June 2009 • The case highlighted the sensitivities about Chinese growing influence within Defence and the establishment. http://www.smh.com.au/national/joel-fitzgibbon-admits-to-accepting-gifts-from-liu-family-20090326-9bt7.html

  17. Tension 5: Human Rights • Rudd’s Speech in 2008 (see previous slide) • 2008 Olympic Torch protests. Tibet protests greeted the Olympic torch relay around the world including Canberra. A counter-protest by Chinese students was organised. • 2009 Visa given to Uighur leader - RebiyaKadeer. This was greeted with outrage by Beijing. There was also a diplomatic incident over the showing of a documentary about Rebiya at a film festival. China sees her as seperatist supporter of terrorism.

  18. Tension 6: Chinese Influence in South Pacific East Timor boat purchase – June 2010 • TWO 43-metre Chinese-made navy patrol boats, mounted with 30-millimetre canons. East Timor purchased the boats from a Chinese company in 2008 without consulting Australia, which has had hundreds of troops deployed in the country since 2006. • Ian Storey, an expert on East Timor's relationship with China, told The AgeDili bought the boats to ''demonstrate to Canberra that it has other choices when it comes to defence partners'‘ • http://www.theage.com.au/world/timor-boat-purchase-could-set-diplomacy-adrift-20100606-xnaf.html Influence in Fiji under dictatorship • Chinese growing ties with the dictatorship as it is shunned by Australia and NZ worry the Oz government • http://www.theage.com.au/opinion/editorial/fijis-warming-to-china-is-a-concern-20100812-121d5.html

  19. TENSION 7: DEFENCE ISSUES 2009 Defence Paper: Defending Australia in the Australia Pacific Century: Force 2030 www.defence.gov.au/whitepaper/.../defence_white_paper_2009.pdf The Defence White Paper released in May 2009 states: • The U.S. alliance is still crucial and the U.S. presence in the region is both likely to continue and desirable and that Australia will continue to benefit from being under the protection of the U.S. nuclear Umbrella but that: we will not want always go send “expeditionary” forces to U.S. wars eg in the Middle East unless it protects our interests • We have important strategic interest is the security, stability and cohesion of our immediate neighbourhood, which we share with Indonesia, PNG, East Timor, New Zealand and the South Pacific island states. • Security interests not just narrow and local but rely on both a stable Asia Pacific and a stable international order too therefore: • Australia needs to be prepared for the outbreak of direct conflict in our region to due major power tensions eg rising China and waning U.S. • We need to increase our military spending to protect our interests in the region, including sea lanes. We are buying military equipment to do this

  20. Massive Military Expenditure • Spending of up to $100 billion dollars on new weapons: • The weapons include a new generation of very long range submarines to provide "strategic strike" with cruise missiles and 100 state-of-the-art Joint Strike Fighters, and a new range of frigates

  21. China’s Response • A LEADING Chinese military strategist, Rear Admiral Yang Yi , slammed Australia's new defence white paper as a "crazy", "stupid" and "dangerous" document that risks inciting an arms race across the region. • http://www.theage.com.au/national/military-buildup-risks-new-asian-arms-race-20090503-arew.html

  22. But the money rolls in • Moved into No1 Trading partner spot • Visit by Chinese Vice President Xi Jinping with a large delegation in June 2010. http://www.abc.net.au/worldtoday/content/2010/s2933554.htm • Moving for a G20 and greater say in IMF • http://www.news.com.au/business/australia-signs-50-billion-gas-deal-with-china/story-e6frfm1i-1225763548184

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